If you want some reduction in your liability, it is best to do it in either an LLC or a Corporation…. the problem there, is that you will need to build up credit in either one of those prior to making any purchases. If you do get private money, you CANNOT mix money from several investors without the proper SECURITIES licensing or you may have a very unpleasant time with the FEDS ! One investors money for one deal only…. unless you like to live dangerously !

To reduce liability, form an LLC or a sub-s corp, but you will still have to personally guarantee any loans. You can have several LPs under the LLC. The real issues come about based on your capital structure, not the business you are in.